This Washington

House Democrats Send Amended Budget Back to Senate; Special Session Likely

By Josh Feit March 8, 2012

UPDATE, 5:10 PM: The house passed the budget 53-45



House ways and means chair Democratic Rep. Ross Hunter (D-48, Medina)

The scramble to reach a budget deal before midnight tonight is on, though it isn't likely to happen. The legislative session is scheduled to end today which means a special session is very likely.

The two budgets in play are the Democratic house budget and the senate budget, which was passed by the minority 22 Republicans with the help of three Democrats, giving them a 25-vote majority. Today, the house is sending its budget over to the senate as an amended version of the senate budget. The updated house budget follows Sen. Ed Murray's budget proposal (the one that was displaced in the now-famous GOP coup last Friday
), by actually adding money to education and reducing some of the cuts to health care and human services from the initial house version.

 Here's a comparison of the two budgets (the latest house version is in the first column; the Republican version is the third column). The comparison also includes Sen. Murray's initial proposal and the original house proposal, ESHB 2127.


In summary:

The GOP senate budget  slams human services and the environment with millions more in cuts than the competing house budget.

In the area of human services, for example, the Republicans wipe out $300 million in programs—including $202 million cut to the Temporary Assistance for Needy Families program—while house ways and means chair Rep. Ross Hunter’s (D-48, Medina) budget makes $134 million in cuts. On the environment, the Republicans cut $85 million to the house's $40 million.

On state employee compensation, the Republicans cut $150 million more than the house.

On higher education, the Republican budget cuts $30 million while the house now adds $242,000. (Previously, the house cut about $50 million.)

On K-12 education, the GOP cuts $43 million while the new house budget add $11 million. (Previously, the house cut about $7 million.)

The GOP proposal trumps the Democrats in one funding area, cutting less from long term care—$6 million in cuts  vs. $27 million.

In addition to those budgeting differences, here are a few of the other key issues that are deadlocking negotiations.

1)
The Republicans will not accept the house budget delay of $330 million in K-12 payments. The Democrats say the budgeting sleight of hand simply delays the payment by 24 hours (into the next biennium), staving off dramatic cuts in other areas without impacting the school year. The Republicans say the gimmick sets up yet another major shortfall, likely $2 billion, next session.

2)
The Democrats will not accept a $130 million GOP delay in payment in state employee pension payments. The Republicans say that cutting now will allow future reforms to scale back state employee benefits that will save $1.9 billion.

3)
Moderate Democrats want more reforms attached to the budget, such as a state takeover of K-12 health insurance. This is a must-have for Sen. Steve Hobbs (D-44, Lake Stevens), one of the Roadkill Democrats who did not join the Republicans in last week's coup, but may not side with the Democrats if  "cost curve reforms" like that are not in place.

Rumors were going around Olympia earlier today that the Democrats had lost Hobbs. Not true for now. He told me today: "I like the house budget. It's like the Democratic senate budget that I supported. But we have to have reforms to deal with lowering the future cost curve for the state."

4) A roughly $1 billion jobs bonding package, floated on existing capital budget revenue streams, is in jeopardy because the Republicans want to siphon money away from the package for the general fund.

These major issues are not likely to be resolved today, setting up a special budget session that would probably being this weekend or early next week.
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